Hydro’s upstream aluminium business, with a 100% hike in adjusted EBITDA, offsets poor performance in downstream sector

Hydro's total revenue in H1 2024 was NOK 98,490 million, down by 3.6 per cent from NOK 102,164 million in H1 2023.

Hydro's Adjusted EBITDA also saw a year-on-year decline in Q2 2024, standing at NOK 5,839 million, down by 18 per cent from NOK 7,098 million. Sequentially, it rose 8 per cent from NOK 5,411 million.

The year-on-year decline in Q2 adjusted EBITDA also led to a reduced EBITDA for H1 to NOK 11,250 million versus NOK 14,623 million a year ago. Hydro's annual revenue and adjusted EBITDA downfall in H1 2024 could be attributed to lower extrusion volumes, narrower recycling margins, decreased energy spot sales, and higher fixed costs, partially offset by higher alumina prices and lower raw material costs.

The only business area where Hydro's adjusted EBITDA grew in Q2 2024 was bauxite and alumina, amounting to NOK 1,616 million, up 100 per cent Q-o-Q from NOK 804 million and 98 per cent higher Y-o-Y from NOK 817 million.